The Swiss Financial Market Authority licensed bank SEBA seeks to offer its clients the tools of Aave’s institutional DeFi platform Arc.
Arc disclosed a press release to its members that Swiss bank SEBA had submitted a proposal. Once accepted, SEBA will be allowed on Arc, granting its investors flexible and fully regulated DeFi access.
SEBA Seeking Access to the Aave’s Institutional DeFi Platform for its Clientele
Financial institutions are the intermediaries who facilitate lending and borrowing in traditional finance. In cryptocurrencies, the same is facilitated via decentralized protocols on a blockchain. Aave is the leading decentralized protocol for creating money markets on Ethereum.
SEBA is a digital asset-focused bank. Its move to seek Arc whitelisting is bold, considering local and international financial regulators have not been very accepting of the DeFi technology. SEBA’s move could signify the acceptance of the mainstream institutions to blockchain technology as a whole.
SEBA shared the news of the application to Arc via a government post shared by a representative from the bank. In the post, SEBA states that due to regulatory restrictions in their clients’ jurisdictions, they have had challenges deploying liquidities on a large scale in Aave. SEBA’s integration with Aave will grant the former’s clients access to earning on DeFi, per the requirements of regulatory authorities.
Whitelisting SEBA would Also Be Beneficial to Aave
The connection of Swiss bank SEBA with Arc would not only be beneficial to the financial institution. SEBA revealed what it would be bringing to the table for Aave with the whitelisting,
SEBA’s integration with Aave will pump institutional capital into the DeFi protocol, thus accelerating the growth of its total volume of funds.
Additionally, SEBA brings investors confidence, considering its position as a mainstream financial institution, which will be profitable to Aave.